However, Benjani's move did not appear to be concluded before the closure of the transfer window, prompting an investigation from the Premier League.
City boss Sven Goran Eriksson admitted on Monday that he expected the issue to be resolved by Tuesday at the latest.
And, despite reports to the contrary, City have confirmed that the transfer has yet to be given the green light.
"Some news organisations have this evening claimed in unattributed stories that the Portsmouth striker has joined the Blues."
A spokesman added: "No deal has been completed. Manchester City remain in contact with the football authorities regarding this potential transfer."